Are technology innovation and circular economy remedy for emissions? Evidence from the Netherlands

The wavelet analysis is used to examine the wavelet coherence and phase variation in circular economy and emissions in the presence of technological innovation. The findings reveal a time and spectral correlation between them in the short term but an inverse link in the long and medium term. Similarly, the circular economy leads technology innovation in the short term and vice versa in the medium to short term, caused by infrastructure development and business models. The carbon emissions lead technology innovation in the short term and vice versa in the medium run. Furthermore, the existence of technological innovation alters the connection between the circular economy and carbon emissions. The study suggests that upgrading existing infrastructure will enable sectors to produce minimal waste that affects emissions. Technology innovation assists in developing appropriate strategies to solve environmental concerns. The circular economy may be accomplished relatively swiftly and offer greater environmental and economic benefits if businesses and technological developers work together.